Boeing to Acquire Argon ST

The Boeing Co. announced today that it will acquire Argon ST for $775 million ($34.50 per share) in an all-cash deal.

The agreement to acquire Fairfax, Va.-based Argon, a developer of command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) and combat systems, will advance Boeing’s growth strategy and expand its capabilities to address the C4ISR, cyber and intelligence markets.

In addition, the company develops sensors and networks designed to exploit, analyze and deliver information for real-time situational awareness. It has operating locations in Virginia, California, Michigan, Pennsylvania, Florida, Maryland and Texas.

It will operate as a stand-alone subsidiary of Boeing and a new division of Boeing Network & Space Systems, a business within the Boeing Defense, Space & Security operating unit. Additionally, the organization will continue to be led by Terry Collins, chairman and CEO of Argon, and his management team.

The transaction is expected to close by the end of the third quarter 2010. Its completion is subject to a majority of the outstanding Argon shares being tendered, as well as completion of other closing conditions, including US regulatory approval.

Boeing anticipates using existing cash to fund the transaction, which is expected to have an immaterial impact on the company’s earnings.

For more information, visit: www.boeing.com